Addus HomeCare (ADUS) KeyBanc Annual Healthcare Forum 2025 summary

Strategic business model and service integration

• Expanded from personal care to include home health and hospice, creating a continuum of care for aging and disabled populations.

• Geographic density in key states enables comprehensive service coverage and strengthens payer relationships.

• Synergies across service lines allow for seamless client transitions and higher retention as needs evolve.

• Technology and risk scoring tools are being implemented to identify personal care clients who may benefit from clinical services.

• Integration of software systems aims to maximize referral opportunities and streamline care delivery.

Financial performance and growth outlook

• Achieved strong same-store revenue and EBITDA growth in 2024, exceeding long-term targets.

• Maintains a 10% annual growth target, with 40-50% organic and the remainder from acquisitions.

• Recent Gentiva acquisition adds two new states and strengthens presence in five markets, especially Texas.

• 2025 expected to be strong, with organic growth at the high end of 3-5% and continued acquisition opportunities.

• Seasonality impacts margins, with Q1 typically lowest due to payroll resets and Q4 highest from tax caps and hospice rate increases.

Labor and rate environment

• Labor market for personal care has improved, with hiring numbers up and wages now comfortably above minimum wage due to state rate support.

• Focus shifting to maximizing hours from existing workforce through technology and process improvements.

• Clinical staffing challenges remain in some markets but are manageable, with wage growth moderating.

• State rate increases, especially in Illinois and Ohio, have supported both recruitment and top-line growth.

• Rate environment may soften post-COVID, but states continue to value home-based care and show willingness to support rates.